Question 1: Your first task is to determine whether your firm is in a competitive industry.

Based on the following demand function for the firm’s product, what would you answer?

Q = 50,000 – 25*P

Q is the amount produced and P is the price.

Now that you have examined whether your firm is in a competitive industry, let’s take a look at some questions related to price, cost, and profit analysis.

The CFO has provided the following information to you:

fixed costs for the MiniZ are $2.75 million

variable cost per unit is $200

She wants you to analyze the fixed and variable costs, optimal level of production, and profit for the MiniZ component.

Question 3: Find Q, P, average cost, and profit for the MiniZ at the profit-maximizing level. (Again, the demand function for the MiniZ is: Q = 50,000 – 25*P.)

Submit your Price, Cost, and Profit Analysis Report and Calculations to the dropbox below. Be sure to show your calculations in Excel and provide a narrative analysis in PowerPoint. Your narrative analysis should summarize the results of your analysis and make recommendations for the benefit of company.